3PAR: Doing More With Less

Small, but scrappy, 3PAR has a strong data-security business that could make it a takeover target. How its systems do more with less.

STORING DATA SAFELY IS A crucial part of modern business, with years' worth of invaluable information on inventory, sales and customers at stake. Little wonder, then, that creating the "vaults" to store and manage electronic data is a $14 billion-a-year business. Although it's dominated by the likes of EMC (ticker: EMC), IBM (IBM) and Hitachi (HIT), another player has joined the game, winning market share -- and the envy of competitors.

3PAR (PAR), which is based in Fremont, Calif. and named for the initials of...